Equity Trust Company: Complaints Against Missed IRA Distribution Deadlines Common
Many retirees are facing an RMD deadline at the end of December--prompting enterprises like Equity Trust Company to champion the advantages of the Roth IRA or Roth 401(k).
PHILADELPHIA, PA, December 20, 2012
Throughout the economic tumult of the last few years, many retirees have done anything and everything possible to get as much value out of their retirement accounts as possible. For some retirees, however, stretching a retirement account too far can result in big penalties from the IRS. According to a recent article from Daily Finance, most people who are 70 1/2 years or older are required to take a distribution from their traditional IRA or 401(k) before the end of the year; those who have just turned 70 1/2 in 2012 have an extended deadline, until April 1 of 2013. Regardless, the penalties for not taking these required distributions can be steep, and according to Equity Trust Company complaints about required distributions are common among retirees who have traditional retirement accounts.Equity Trust Company is a leading provider of self-directed IRAs and 401(k)s. For Equity Trust Company, complaints about restrictive traditional retirement options are common, and the company responds to them with education on self-directed IRA accounts. Equity Trust Company has issued a new statement to the press, in response to the Daily Finance article and weighing in on these mandatory distributions.
"It is important for people with Traditional IRAs or 401(k)s who will be 70 1/2 in 2013 to prepare for required minimum distributions (RMD) or face penalties that could take away from savings," says the Equity Trust Company statement. The company goes on to point out some of the advantages offered by Roth accounts. "This is also a good reminder that RMD's are not taken from Roth IRA's or Roth 401(k)'s. What this means is that, among other things, you are never required to take money out of a Roth account."
The Daily Finance article also notes that it can prove tricky for retirees to determine the amount of the RMD. The required minimum distribution is calculated based on the age and life expectancy of the retiree, as well as the total market value the retirement account. The IRS website provides tools for making these important calculations.
ABOUT:
Equity Trust Company is the country's leading provider of self-directed IRAs and 401(k)s, with more than 130,000 clients in all 50 states and close to $11 billion of retirement plan assets under administration. The company believes in self-directed retirement accounts as ideal vehicles for generating long-term wealth, as they allow investors the freedom to invest funds as they determine. At Equity Trust Company complaints about restrictive traditional retirement programs are commonly heard, and the company responds to these complaints by providing information about the alternatives available through self-directed programs.